Cargurus ( (CARG) ) has released its Q4 earnings. Here is a breakdown of the information Cargurus presented to its investors.
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CarGurus, Inc., a leading digital auto platform, specializes in the online marketplace for buying and selling new and used vehicles across the U.S., Canada, and the U.K., utilizing proprietary technology and data analytics to enhance transparency and pricing competitiveness.
The company reported robust financial results for the fourth quarter and full year 2024, with notable revenue growth and margin expansion. Key highlights include a 15% year-over-year increase in marketplace revenue for Q4 and a double-digit rise in OEM advertising revenue, demonstrating strong demand and product adoption.
CarGurus achieved a GAAP net income of $45.9 million for Q4 2024, with a non-GAAP adjusted EBITDA of $76.4 million, up 25% year-over-year. The company’s international revenue surged by 26%, and its marketplace business experienced significant growth driven by premium tier migration and strong OEM advertising. However, the digital wholesale segment faced challenges, with a 55% decline in revenue.
Total paying dealers increased by 3% to 32,010, with international dealers growing by 11%. The U.S. marketplace segment generated substantial operating income growth of 30% for Q4, while the digital wholesale segment recorded a significant operating loss. Despite these mixed results, CarGurus ended the year with a solid cash position of $304.2 million.
Looking ahead to 2025, CarGurus aims to strengthen its leadership through data-driven insights and dealer-specific intelligence, with management expressing optimism about future growth opportunities and the potential for further consolidation in the automotive marketplace sector.
